Bank Liable for Fraud Related to Loans Made by Countrywide Unit

In a major win for the U.S. government, a jury Wednesday found Bank of America Corp. liable for fraud related to loans its Countrywide Financial Corp. unit sold to mortgage-finance giants Fannie Mae and Freddie Mac in a program called the "Hustle" in 2007 and 2008.

The decision in this civil case marks the first time a bank has been found liable for fraud for its dealings during the mortgage boom, legal analysts said. Bank...